National Grid has taken steps to construct the United Kingdom’s largest electricity substation on Teesside, positioned to supply power to a major datacentre development in the region. The company finalized a land purchase agreement for approximately 29.5 hectares at Dorman Point on property controlled by Teesworks, a local partnership combining private and public sector involvement.
The substation project follows earlier announcements regarding plans for a large-scale artificial intelligence datacentre on the Teesworks site, with previous applications describing a facility spanning nearly 500,000 square metres. National Grid officials described the arrangement as enabling vital infrastructure to support regional industrial and economic development, particularly in digital technologies and artificial intelligence sectors.
Local leadership has emphasized the strategic importance of adequate power supply to the region’s competitiveness for datacentre investment. Officials noted that power supply constraints have previously placed the UK at a disadvantage relative to competitors in the United States, the Gulf region, and parts of Europe seeking to attract datacentre projects. The planned facility is projected to provide up to 3.2 gigawatts of capacity.
The government has simultaneously advanced its policy framework for datacentre development, issuing a draft national policy statement that characterizes such facilities as essential infrastructure comparable to historical investments in railways and electrical networks. Officials indicated that ensuring both national and local community benefits from datacentre development remains a priority consideration.
Datacentre expansion plans have generated considerable public opposition across multiple regions, with campaign groups protesting proposed developments in various locations. Recent reporting indicated that technology companies have signaled to government officials that public acceptance of datacentre projects requires attention within a limited timeframe to prevent escalating resistance.
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